P2P: Saving Stream (AKA SavingStream)

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  • masonic
    masonic Posts: 23,275 Forumite
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    edited 22 March 2017 at 7:41AM
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    Dan83 wrote: »
    The main draw back to funding secure for me is the interest, it's not paid monthly, it's paid at the end of the term.
    That's not really a drawback once you've been lending there for 6 months, as you'll get a steady stream of interest payments as loans start to redeem/renew, albeit after a period in limbo in many cases.
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    [B]Asset Details        % Book       Asset value        Loan Value    % pa     LTV[/B]
  
In Default            4.57%    £11,790,000.00     £8,051,500.00   12.00%  68.29%

Interest Accruing     8.97%    £24,480,000.00    £15,797,000.00   12.00%  64.53%

Interest Serviced     7.50%    £30,305,000.00    £15,976,107.00   12.00%  52.72%

Interest on Account  78.96%   £333,817,433.00   £136,356,082.00   11.08%  40.85%

Loan Book Total     100.00%   £400,392,433.00   £176,180,689.00   11.29%  44.00%
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • mr._prude
    mr._prude Posts: 162 Forumite
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    Does this mean 20.97% of their loans are in some form of difficulty?

    I take it,
    Default means property is being repossessed and sold to recover loan?
    Interest accruing means loan is not being serviced at all?
    Interest serviced means only interest is being serviced on loan?
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    Yes, that's correct.

    As someone who wants to see the platform succeed but has now withdrawn all money at this stage, the concern is how Lendy can continue to do this without going under, unless they keep the pipeline stoked, which doesn't appear to be happening.

    There are a couple of large loans and some smaller within 8 days of their contract deadline, which will push the number of loans in some form of default above 27% if they do exceed their term.

    The problem is if that does happen, which may not, then the interest paying loans drop to just over 72% of the book. It's enough to keep things going but the current trajectory is not looking very promising.

    That's not to say they will default of course but it shows how precarious things are getting imho.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • economic
    economic Posts: 3,002 Forumite
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    i still have £100 in there waiting to be sold on PBL081. luckily sold out the rest and withdrew my cash. how long will it take to get the £100 sold and out?
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    mr._prude wrote: »
    Does this mean 20.97% of their loans are in some form of difficulty?

    I take it,
    Default means property is being repossessed and sold to recover loan?
    Interest accruing means loan is not being serviced at all?
    Interest serviced means only interest is being serviced on loan?

    Default means the legal process is at least starting.

    Interest accruing means that no interest is being paid, so if you have that loan then you're not receiving anything but may get that interest paid once the security is sold in the future if there is sufficient funds.

    Interest serviced means that the platform is paying the interest, not the borrower.

    As far as I'm aware they don't have any amortising loans so interest is only ever being repaid and the capital is due at the end of the loan term.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    It's worth knowing that it isn't that unusual for property development loans to over-run. The borrowers at Saving Stream have an incentive to be too optimistic because they pay interest up front
  • JohnRo
    JohnRo Posts: 2,887 Forumite
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    The interesting thing I'm keen to watch over the next few months is going to be how much Lendy are able to recover from those loans declared 'legally in default' if that's the correct term.

    I foresee some quite severe haircuts even with the 70% LTV cap.

    Of the £15.8M loans currently accruing interest, all are over 100 days into their IA status and a couple are now within a week of official default.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
  • masonic
    masonic Posts: 23,275 Forumite
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    We're soon going to need a change of thread title jamesd, if that's possible. FCA is not allowing Lendy to use "SavingStream" any more.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    JohnRo wrote: »
    The interesting thing I'm keen to watch over the next few months is going to be how much Lendy are able to recover from those loans declared 'legally in default' if that's the correct term.

    I foresee some quite severe haircuts even with the 70% LTV cap.

    Of the £15.8M loans currently accruing interest, all are over 100 days into their IA status and a couple are now within a week of official default.

    The big question mark is over the value part of the ltv figure.

    If you take the recent very large London loan then many thought the ltv was close to 100%, and you don't get full value on a forced sale as any trader knows.

    I don't take any pleasure in the issues around the platform, their due diligence and valuation seemed to leave something to be desired but they were very effective at pushing deals through and the liquidity On the platform has generally been good.

    The only large default I'm aware of was the garden centre, and that was repaid in full though whether that as all from equity in the loan I'm not clear on.

    It's somewhat ironic that they have also been forced to change their business model to stop servicing debt on non performing loans by the fsa, though I understand the reason behind this.
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